SpaceX Memo Confirms Merger with xAI, Valuation Reaches $1.25 Trillion

Odaily News: According to informed sources, Elon Musk plans to merge SpaceX with xAI, a move aimed at consolidating his increasingly vast strategic footprint in the fields of artificial intelligence and space exploration. The sources indicated that the merger plan was announced via an internal memo on Monday. The merged company is expected to price each share at approximately $527, valuing the company at $1.25 trillion. SpaceX and xAI have not yet responded. This initiative further intertwines Musk's various business ventures. He acquired the social media platform Twitter (later renamed X) at the end of 2022 and subsequently merged that company with xAI in a $33 billion deal. xAI also operates the chatbot Grok, which consumes about $1 billion per month towards the goal of achieving a deep understanding of the universe. Merging with SpaceX will integrate capital, talent, and computing resources while blurring corporate boundaries. This merger may realize Musk's vision of deploying data centers in space to support the complex computations required by artificial intelligence. According to documents filed last Friday, SpaceX is applying for permits for this plan, intending to launch up to 1 million satellites into Earth's orbit.